Minister Responds to Funding Cuts

The Minister responsible for children's aid societies in Ontario is defending her ministry's decision to trim funding to Family and Children's Services in Rainy River.

Youth and Children Services Minister Deb Matthews says they've asked all agencies to cut costs as provincial spending has reached the billion dollar mark while the number children in their care is decreasing.

Matthews wants administration costs at the Rainy River agency to be 10 per cent of its total budget.

"Their overhead costs have gone up 35-per cent since 2005," says Matthews. "That's a pretty big increase in their overhead expenses. Meantime the number of kids in care has dropped by over 20 per cent."

Matthews says she understands the local challenges and is working with the agency to help it ensure the funding it receives is spent in the right areas.

Meantime, the financial situation at Family and Children's Services reached the legislature today.

Kenora-Rainy River MPP Howard Hampton told the legislature that the province's funding reduction is undermining the agency's effort to provide service to the district.

"This agency has now been put in a very difficult financial situation," said Hampton, "because your ministry, mid-year, cut their budget by $400-thousand on a full year budget of only $3 million. That means they will not have the money to provide services for children in need for the last three months."

Matthews denied the agency is in threat of shutting down and said she's looking to improve services for children.